Gale is the beneficiary of a $1,500,000 deed of trust on a single family home. Frank, the trustor, made $200,000 in payments before going into default. At the trustee’s sale, the property sold for $1,000,000, resulting in a $300,000 deficiency. In California, a deficiency judgment cannot be obtained ____

A deficiency judgment cannot be obtained through any of the provided answer selections. For example, a deficiency judgment cannot be obtained if the security is a purchase money trust deed. A mortgage holder must use the judicial foreclosure option rather than a trustee’s sale to receive a deficiency judgment. If the fair market value (FMV) of the property exceeds the amount due on the trust deed, no deficiency would exist.